Industry insider says the Competition Commission is too slow
- 22ND MAY 2007
The Competition Commission is being too slow in its investigation in to the payment protection insurance (PPI) sector says industry expert Simon Burgess.
In a recent press statement, Simon from independent payment protection insurance provider British Insurance accused the Commission of “standing by and letting millions of cash-strapped consumers waste money on inflated Payment Protection Insurance (PPI) premiums, despite a promise to investigate this market”
Burgess - who has long been a staunch supporter of fairer sales practices for customers who buy payment protection insurance cover commented that consumers are being “harmed” in a sector where there is a “preventing, restricting, or distorting competition”. He cites how allegations from the Office of Fair Trading include high pressure sales techniques and the selling of often unsuitable, price inflated policies have left many consumers facing debt, yet the Commission is dragging its heels in reviewing the market.
The Commission has produced an administration timetable, with the first document due in around four months’ time and a cut off point of February 2009 for remedial measures to be implemented. However, says Burgess, surely enough research has already been carried out previously by the Financial Services Authority and the OFT in order for new regulations to be set in place?
He feels that the first document will repeat these previous findings and will not do what is most important – protecting the consumer now.
With research showing that the current rate rises have seen a quarter of all mortgage holders being financially stretched with the possibility of millions of homeowners having to remortgage, there is more debt now than ever before.
“At a time when consumers are at their most financially vulnerable,” says Burgess “the Commission should be acting quickly base don what previous research has highlighted about the market place”.
He concludes: “What more evidence does the Commission need? There have been calls for this practice to be outlawed and yet consumers are still being allowed to fall victim to it.”
